Bill Text: TX HB40 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to the exclusive jurisdiction of this state to regulate oil and gas operations in this state and the express preemption of local regulation of those operations.
Spectrum: Strong Partisan Bill (Republican 72-7)
Status: (Passed) 2015-05-18 - Effective immediately [HB40 Detail]
Download: Texas-2015-HB40-Enrolled.html
H.B. No. 40 |
|
||
relating to the exclusive jurisdiction of this state to regulate | ||
oil and gas operations in this state and the express preemption of | ||
local regulation of those operations. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The legislature finds that the laws and policy of | ||
this state have fostered successful development of oil and gas | ||
resources in concert with the growth of healthy and economically | ||
vibrant communities for over 100 years. The legislature | ||
acknowledges this cooperative progress and that mutual benefit is | ||
derived from the statutes already in effect, which provide | ||
effective and environmentally sound regulation of oil and gas | ||
operations that is so comprehensive and pervasive that the | ||
regulation occupies the field, while facilitating the overriding | ||
policy objective of this state of fully and effectively exploiting | ||
oil and gas resources while protecting the environment and the | ||
public's health and safety. The legislature recognizes that in | ||
order to continue this prosperity and the efficient management of a | ||
key industry in this state, it is in the interest of this state to | ||
explicitly confirm the authority to regulate oil and gas operations | ||
in this state. The legislature intends that this Act expressly | ||
preempt the regulation of oil and gas operations by municipalities | ||
and other political subdivisions, which is impliedly preempted by | ||
the statutes already in effect. | ||
SECTION 2. Subchapter C, Chapter 81, Natural Resources | ||
Code, is amended by adding Section 81.0523 to read as follows: | ||
Sec. 81.0523. EXCLUSIVE JURISDICTION AND EXPRESS | ||
PREEMPTION. (a) In this section: | ||
(1) "Commercially reasonable" means a condition that | ||
would allow a reasonably prudent operator to fully, effectively, | ||
and economically exploit, develop, produce, process, and transport | ||
oil and gas, as determined based on the objective standard of a | ||
reasonably prudent operator and not on an individualized assessment | ||
of an actual operator's capacity to act. | ||
(2) "Oil and gas operation" means an activity | ||
associated with the exploration, development, production, | ||
processing, and transportation of oil and gas, including drilling, | ||
hydraulic fracture stimulation, completion, maintenance, | ||
reworking, recompletion, disposal, plugging and abandonment, | ||
secondary and tertiary recovery, and remediation activities. | ||
(b) An oil and gas operation is subject to the exclusive | ||
jurisdiction of this state. Except as provided by Subsection (c), a | ||
municipality or other political subdivision may not enact or | ||
enforce an ordinance or other measure, or an amendment or revision | ||
of an ordinance or other measure, that bans, limits, or otherwise | ||
regulates an oil and gas operation within the boundaries or | ||
extraterritorial jurisdiction of the municipality or political | ||
subdivision. | ||
(c) The authority of a municipality or other political | ||
subdivision to regulate an oil and gas operation is expressly | ||
preempted, except that a municipality may enact, amend, or enforce | ||
an ordinance or other measure that: | ||
(1) regulates only aboveground activity related to an | ||
oil and gas operation that occurs at or above the surface of the | ||
ground, including a regulation governing fire and emergency | ||
response, traffic, lights, or noise, or imposing notice or | ||
reasonable setback requirements; | ||
(2) is commercially reasonable; | ||
(3) does not effectively prohibit an oil and gas | ||
operation conducted by a reasonably prudent operator; and | ||
(4) is not otherwise preempted by state or federal | ||
law. | ||
(d) An ordinance or other measure is considered prima facie | ||
to be commercially reasonable if the ordinance or other measure has | ||
been in effect for at least five years and has allowed the oil and | ||
gas operations at issue to continue during that period. | ||
SECTION 3. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 40 was passed by the House on April | ||
20, 2015, by the following vote: Yeas 125, Nays 20, 1 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 40 was passed by the Senate on May 4, | ||
2015, by the following vote: Yeas 24, Nays 7. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |